BIDEN TO FACE LEGAL CHALLENGES AFTER RULING ON CORRUPT PLAs

Associated Builders and Contractors released the following statement in response to the announcement of a Biden administration final rule, Federal Acquisition Regulation: Use of Project Labor Agreements for Federal Construction Projects, implementing President Joe Biden’s Executive Order 14063, which requires federal construction contracts of $35 million or more to be subjected to controversial project labor agreements. PLAs steer taxpayer-funded public works contracts to union-signatory contractors, granting union workers a monopoly to build these projects.

“The Biden administration’s burdensome, inflationary and anticompetitive PLA mandate rule will needlessly raise costs on taxpayer-funded construction projects and steer contracts to unionized contractors and workers,” said Ben Brubeck, ABC vice president of regulatory, labor and state affairs. “Absent a successful legal challenge, this executive overreach will reward powerful special interests with government construction contracts at the expense of taxpayers and the principles of free enterprise and fair and open competition in government procurement."

“When mandated by governments, PLAs increase construction costs to taxpayers by 12% to 20%, reduce opportunities for qualified contractors and their skilled craft professionals and exacerbate the construction industry’s worker shortage of more than half a million people in 2023,” said Brubeck. “ABC will continue to fight on behalf of quality, experienced contractors harmed by this rule and the 88.3% of America’s construction industry who have made the choice not to belong to a union and want a fair opportunity to participate in federal construction projects––but cannot do so because of PLA schemes."

“In addition, ABC condemns Biden administration policies independent of this rulemaking that push PLAs on competitive grant programs administered by federal agencies affecting nearly $260 billion worth of federally assisted infrastructure projects procured by state and local governments as well as schemes by the Biden administration to coerce private developers of hundreds of billions of dollars’ worth of clean energy and domestic microchip manufacturing projects to mandate PLAs. Biden’s PLA policies circumvent congressional intent as none of these policies were passed in funding legislation."

“ABC plans to challenge this Biden administration scheme in the courts on behalf of taxpayers and the majority of the construction industry,” said Brubeck. “In the interim, ABC will continue to oppose its special interest-favoring policy using all tools in our advocacy and legal toolbox while educating stakeholders about the negative impact of government-mandated PLAs on federal and federally assisted projects." 

CHAIRMAN JAMES COMER CHALLENGES BIDEN'S EXECUTIVE ORDER ON FEDERAL CONSTRUCTION LABOR AGREEMENTS

House Committee on Oversight and Accountability Chairman James Comer (R-Ky.) issued the following statement following an announcement of a final rule implementing President Biden’s Executive Order 14063, “Use of Project Labor Agreements for Federal Construction Projects.”

“The Biden Administration today moved forward with yet another anti-growth, inflationary policy. This rule discriminates against contractors based on labor affiliation, favors labor unions, raises taxpayer costs, and freezes local workers out of job opportunities. This couldn’t come at a worse time for America’s local economies."

“The Oversight Committee has raised concerns to the Office of Management and Budget about the legal implications and risks of Project Labor Agreements for the construction workforce and our concerns about this rule remain. We are committed to bringing transparency to the dangers of this policy and ensuring all workers get a fair shot at crucial federal projects.”

To learn more about how corrupt government mandated PLAs rig the competitive bidding process, hurt taxpayers and endanger plans to rebuild America’s infrastructure, visit BuildAmericaLocal.com.

Download the ABC Action App today! The app allows you to email pre-written letters to legislators in your district with the click of a button to show your opposition or support for federal rulings such as this EO on PLAs. Help keep ABC the voice of construction by adding your voice! 